DATE: June 27, 2002

SUBJECT: Federal Acquisition Circular (FAC) 2001-08, Miscellaneous Amendments

SOURCE: Federal Register, June 27, 2002, Vol. 67, No. 124, page 43511

AGENCIES: Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA)

ACTION: Final Rules

SYNOPSIS: The Federal Acquisition Regulatory Council is issuing FAC 2001-08 to amend the Federal Acquisition Regulation (FAR) in the following areas: (1) definition of "Claim" and terms relating to termination; (2) Federal Supply Schedule order disputes and incidental items; (3) relocation costs; and (4) technical amendments.

EFFECTIVE DATES: All items are effective July 29, 2002.


      Items (1) and (2), Linda Klein at 202-501-3775.

      Item (3), Jeremy Olson at 202-501-3221.

For more information on the technical amendments or for general information, contact the FAR Secretariat, Room 4035, GS Building, Washington, DC 20405, 202-501-4755.

SUPPLEMENTAL INFORMATION: (1) Definition of "Claim" and Terms Relating to Termination: This final rule moves the definitions of "claim" and various other terms related to contract terminations to FAR 2.101, Definitions, to clarify the applicability of definitions, eliminate redundant or conflicting definitions, and make the definitions easier to find. The rule is not intended to change the meaning of any FAR text or clause, nor is the movement of the definitions to FAR 2.101 intended to change the operation of the cost principles.

The final rule makes the following changes:

On August 15, 2001, a proposed rule was published to make these changes (see the August 15, 2001, FEDERAL CONTRACTS DISPATCH "Federal Acquisition Regulation (FAR); Definition of 'Claim' and Terms Relating to Termination"). One respondent submitted two comments suggesting editorial changes, and both were accepted, so the proposed rule was finalized with a correction to a cross-reference and the inclusion of "the movement of the various definitions to FAR 2.101 is not intended to change the operation of the cost principles" in the introduction to the final rule.

(2) Federal Supply Schedule Order Disputes and Incidental Items: This final rule amends the FAR to add policies on disputes and incidental items under Federal Supply Schedule (FSS) contracts and to remove the requirement that contracting officers notify GSA when a schedule contractor refuses to honor an order placed by a government contractor, as follows:

A proposed rule was published on December 19, 2000, to make these changes (see the December 19, 2000, FEDERAL CONTRACTS DISPATCH "Federal Acquisition Regulation (FAR); Federal Supply Schedule Order Disputes and Incidental Items"). Nine respondents submitted comments, and the following changes were made to the finalized rule:

(3) Relocation Costs: FAR 31.205-35, Relocation Costs, is amended to make the following changes:

(4) Technical Amendments: This makes several changes to the FAR to update references and make editorial changes:

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2002 by Panoptic Enterprises. All Rights Reserved.

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